Online Reporter
Michael Tome
Business Reporter
TSL Limited shareholders have approved the company’s proposed migration from the Zimbabwe Stock Exchange (ZSE) to the Victoria Falls Stock Exchange (VFEX), as part of its strategy to access deeper pools of foreign currency capital to finance expansion and export growth initiatives.
The migration, which remains subject to regulatory approvals, is expected to be implemented through the voluntary delisting of TSL’s ordinary shares from the ZSE and their subsequent listing on the VFEX main board.
The approval was granted at an Extraordinary General Meeting (EGM) and half-year analyst briefing earlier today, where shareholders voted in favour of resolutions relating to the delisting from the ZSE, listing on the VFEX, preservation of shareholder rights and authorisation of directors to complete the transaction.
TSL said the move was driven by its growth strategy and the need to secure access to long-term, competitively priced capital to fund future investments across its operating businesses.
In his remarks on the sidelines of the analyst briefing and EGM, TSL chief executive Mr Derek Odoteye said the VFEX platform would provide opportunities to support investment into infrastructure projects, expansion of operating units and the company’s ambitions to grow its export footprint.
He added that accessing suitable funding would be critical in supporting its capital development programme.
“We are on a growth trajectory and we are looking at being able to continue investing in different operating units, some of which include infrastructure, which is more long-term in nature
“To fund those capital developments, we are going to need access to funding that is long-tenured and correctly priced, and the VFEX opens up opportunities for us to do that,” Mr Odoteye said.
The migration is also expected to provide benefits to shareholders through incentives associated with VFEX-listed counters, including potential advantages relating to capital gains tax, dividends and transaction costs.
“Shareholders stand to benefit directly from the migration to the VFEX, and we believe the opportunities that the VFEX opens also allow for greater investor participation as the company continues to grow,” he said.
At the EGM, shareholders representing more than 75 percent of the company’s issued share capital were present in person or through proxies, meeting the quorum requirements for the meeting.
Shareholders further approved that the migration would preserve all existing rights, privileges and conditions attached to the company’s securities as currently approved under the ZSE listing.
